DSCR Loan Arkansas

Last updated: November 20, 2024

The DSCR loan has quickly become the preferred financing method for Arkansas rental property investors looking to grow and optimize their portfolio in a streamlined and hassle-free manner.

What areas do you do serve in Arkansas?

We work with all properties in Arkansas that have a non-rural designation. Use this rural designation search tool to see if your property is considered rural.

Are you able to lend on rural properties?

We can't lend on rural properties. How can I find out, if my property is rural? Here are more detail on how to verify if your property is rural in our Rural Designation Search Tools. The 2 search tools are hosted by USDA Rural Development Property Eligibility and CFPB Rural and Underserved Areas Checker. Both of the tools must flag the property as none rural for it to be eligible for our funding. Use these instruction to find out if your property is considered rural

What areas in Arkansas are booming?

Arkansas's rental market is experiencing steady growth due to a combination of factors, including affordable cost of living compared to national averages, moderate job growth in sectors like healthcare and construction projected over the next 5 years, and limited housing supply putting upward pressure on rents, particularly for single-family homes.

Northwest Arkansas (Fayetteville/Springdale/Rogers)

The Northwest Arkansas region, including Fayetteville, Springdale, and Rogers, is experiencing moderate population growth, with an estimated 20,000 new residents expected in the next 5 years, driven by major employers like Walmart headquarters and the University of Arkansas.

• 72701 (Fayetteville): Home to the University of Arkansas, creating high demand for rentals near campus. Major employers include the University and Walmart. Rents could potentially increase by 3-5% annually.
• 72764 (Springdale): Industrial center with Tyson Foods headquarters and other manufacturing facilities. Rents could potentially increase by 2-4% annually due to steady job growth.
• 72756 (Rogers): Growing suburban area with a mix of families and young professionals. Major employers include Walmart and retail/service businesses. Rents could potentially increase by 2-4% annually due to steady demand.

Central Arkansas (Little Rock/North Little Rock)

Central Arkansas, including Little Rock and North Little Rock, is experiencing slow but steady population growth, with an estimated 10,000 new residents expected in the next 5 years. Major economic drivers include state government, healthcare (UAMS Medical Center), and finance sectors.

• 72201 (Downtown Little Rock): Revitalized downtown area with a growing entertainment district and job opportunities. Major employers include UAMS, banks, and state government. Rents could potentially increase by 2-4% annually as demand rises from young professionals.
• 72207 (Chenal): Upscale suburban area with excellent schools. Major employers nearby include healthcare facilities and corporate offices. Rents could potentially remain stable or increase slightly by 1-2% annually due to limited availability.
• 72118 (North Little Rock): Family-friendly area with a growing population. Major employers include manufacturing facilities and retail/service businesses. Rents could potentially increase by 2-4% annually due to steady demand.

Fort Smith

Fort Smith is experiencing moderate population growth, with an estimated 5,000 new residents expected in the next 5 years. Major economic drivers include manufacturing (aerospace and automotive industries) and healthcare (Mercy Fort Smith).

• 72901 (Downtown Fort Smith): Undergoing revitalization with new developments. Major employers include Mercy Fort Smith hospital and manufacturing companies. Rents could potentially increase by 2-4% annually as demand rises.
• 72903 (Greenwood): Suburban area with excellent schools and proximity to major employers. Rents could potentially increase by 2-3% annually due to steady demand from families.
• 72916 (Barling): Growing suburban area with a mix of young professionals and families. Major employers include manufacturing facilities and retail/service businesses. Rents could potentially increase by 2-4% annually due to steady demand.

How do DSCR loans work in Arkansas?

The overall process of getting a DSCR Loan in Arkansas is approximately as follows. You submit an application for a loan (you can get started on your loan with an instant quote) answering 14 questions about your property. An instant quote will tell you if you qualify for the loan in under 1 minute of your time. It will also show you the a preliminary interest rate and loan amount. Once you select desired LTV (which can be changed later), your quote will be converted to a Loan File for processing purposes.

You will have to submit documents as part of your Loan File for underwriting. Documents we may ask for will include personal and property documents such as purchase contracts, current leases, borrowing entity documents, deeds, title work (we will engage a title company or an attorney on your behalf to draw up these documents), background and credit reports (that we will order), bank statements for liquidity verification as well as other documents that may be applicable to your specific deal. Full list of requirements can be found here in DSCR loan requirements.

We will also handle all the aspects of scheduling and appraisal for you. Please note that we have a promotion, where new clients receive a 100% refund at closing for their appraisal and existing clients forever get a 50% refund for their appraisal at closing as our way to say thank you for allowing us to partner with you! Once all the loan documents are submitted, the Loan File goes through underwriting, at which point the underwriting committee may ask for additional documents depending on their discretion. Once the committee receives all the documents and approves the file, closing can be scheduled.

The closing, will be handled by the title company or at the office of closing attorney. Once closing is complete, funds will be wired. Post closing, the loan will be entered into servicing and you will receive information regarding setting up auto-pay or other options that may be available for your loan depending on the specific servicer's capabilities.

Can you lend on properties worth less then $100k?

In short, no, appraisal as is value must come in at above 100k. We can only lend on properties that are less then $100k if they are in a portfolio with other properties and the portfolio's total as-is value on the appraisal is above $250k. In order to qualify for our loans, the property must appraise for at least $100k as-is at the time of the appraisal, however, total loan amount may be less then 100k, minimum loan amount is $55k.

Do you do cash out refi no seasoning for Arkansas loans?

We do offer refinance options with no seasoning requirements. Here is the general criteria for cash out refi no seasoning for Arkansas loans. Easiest way to see if you qualify is to answer a few question in our online quoter. It will compare all of our lending criteria against your answers and give you a response in under 1 minute without you needing to read anything. If in case you want to do it the hard way, please read on to see some of the guidelines below with a full list of our requirements here.

Minimum loan amount has to be above $55,000. Minimum As-Is value on the appraisal has to be $100,000. Between 1-4 units. Must have an active lease with proof of security deposit collected. Property condition must be C4 or better. Minimum credit score of 680. Credit score between 680 to 699, gets maximum LTV of 70%, credit score of 700+ gets maximum LTV of 75%. Max LTC, 100% (less than 90 days seasoning), 140% (90 to 179 days seasoning). Minimum verified rehab, 20% of purchase price (less than 90 days seasoning), n/a (90+ days seasoning). Minimum verified rehab, is an improvement that has been done to the unit to verify increase in as-is value in such as short period of time (less then 90 days) to justify the no seasoning period. Origination fee of 1 to 2 points depending on the loan amount to keep the lights on. Lender fee, $1,995 (doesn't go to OfferMarket), includes multiple fees to several different 3rd party verification services, necessary to certify the information in the Loan File for closing. Appraisal at AMC market price, we also have a promotion that new clients get 100% of their appraisal refunded at closing and 50% refund for existing clients. Time to close, 20-25 days.

I know this is a lot of information. You don't have to lift a finger to calculate any of this to see if you qualify, all you have to do is answer 14 simple questions about your deal and we will tell you if we are a good fit for you and what kind of deal we can offer you. To get an answer on your specific situation, please answer 14 simple questions here in our online quoter for Arkansas DSCR loans.

Do I need to have my property insured to qualify for funding?

Yes, but if you don't already have insurance, we can roll it into the lending process with no extra charge or effort to you. Our insurance team works with thousands of carriers and is intimately familiar with the insurance requirements of your loan. They will be able to ether talk to the agent of your choice or find the most competitive offer without our network of carriers to complement your loan with no extra effort or expense to you. If you already have insurance, you should get an instant quote to see if we can offer you a more competitive rate and save you thousands of dollars over the lifetime of your policy. Learn more about landlord insurance and get you instant landlord insurance quote here.

What are the best DSCR Lender Arkansas?

There are many DSCR lenders in Arkansas and you have many options to get your loan funded. As fellow rental property investors, we built OfferMarket to be a low cost DSCR lender. We believe you should never have to wonder if you're getting the best possible terms from your lender. You should never need to waste time negotiating. That's why we provide you with our best possible term sheet every single time -- you get our lowest rate and lowest fees.

Your first loan with OfferMarket is the start of a long term relationship. It's our opportunity to provide you with remarkable value and prove that we deserve to be your partner on your real estate investing journey. We feel a sense of obligation to prove we deserve your business on each and every loan.